External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Equity Bottom-Up

<ul><li>The company achieved a strong all-round performance despite weak and challenging demand environment witnessing a volume growth of 13.9% YoY in CY23.</li><li>This growth was primarily fueled by robust double-digit volume expansion in both Indian and international markets.</li><li>Additionally, the realization per case increased by 7% to Rs 176, attributed to a more favourable product mix emphasizing 250 ML smaller SKUs (with higher realization per unit), greater prominence of the Sting portfolio, and enhanced realization in international markets.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The company achieved a strong all-round performance despite weak and challenging demand environment witnessing a volume growth of 13.9% YoY in CY23.This growth was primarily fueled by robust double-digit volume expansion in both Indian and international markets.Additionally, the realization per case increased by 7% to Rs 176, attributed to a more favourable product mix emphasizing 250 ML smaller SKUs (with higher realization per unit), greater prominence of the Sting portfolio, and enhanced realization in international markets.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages Ltd - Robust All-Round Performance

<ul><li>The company’s robust all-around performance was led by volume growth of 18% YoY (~14% in CY23), driven by strong double-digit volume growth in the Indian and international markets.</li><li>The realization in CY23 grew by 7% at Rs 176/case, led by an improved product mix of smaller SKUs (205 ml-smaller SKUs have higher realization), increased salience of the sting portfolio in the domestic market, and improved realization in international markets.</li><li>Gross and EBITDA margin expanded by 34bps/179bps YoY to 56.6%/15.7% on account of lower PET prices, higher realization, and operational efficiencies.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The company’s robust all-around performance was led by volume growth of 18% YoY (~14% in CY23), driven by strong double-digit volume growth in the Indian and international markets.The realization in CY23 grew by 7% at Rs 176/case, led by an improved product mix of smaller SKUs (205 ml-smaller SKUs have higher realization), increased salience of the sting portfolio in the domestic market, and improved realization in international markets.Gross and EBITDA margin expanded by 34bps/179bps YoY to 56.6%/15.7% on account of lower PET prices, higher realization, and operational efficiencies.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages Ltd - STRONG VOLUME-LED GROWTH CONTINUES; MAINTAIN BUY

<ul><li>VBL is the second largest franchisee of PepsiCo in the world (outside the USA).</li><li>Products manufactured by VBL include Carbonated Soft Drinks - Pepsi, Mountain Dew, Seven Up, and Mirinda; Non-Carbonated Beverages – Tropicana Slice, and Tropicana Frutz; and Bottled water – Aquafina.</li><li>The company accounts for ~90% of PepsiCo’s beverage sales volume in India and is present in 27 States and 7 UT. It is also the exclusive bottler for PepsiCo in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

VBL is the second largest franchisee of PepsiCo in the world (outside the USA).Products manufactured by VBL include Carbonated Soft Drinks - Pepsi, Mountain Dew, Seven Up, and Mirinda; Non-Carbonated Beverages – Tropicana Slice, and Tropicana Frutz; and Bottled water – Aquafina.The company accounts for ~90% of PepsiCo’s beverage sales volume in India and is present in 27 States and 7 UT. It is also the exclusive bottler for PepsiCo in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages: Expanding Its Footing in the African Market

<ul><li>VBL delivered robust all-around performance, which was led by volume growth of 15.4% YoY and an increase in realization growth, up 5.6% YoY.</li><li>The said realization growth was led by strong growth in the international market.</li><li>The company’s International business reported 17.5% growth, thanks to the improved product mix, market share gains, and effective implementation of GTM strategy. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

VBL delivered robust all-around performance, which was led by volume growth of 15.4% YoY and an increase in realization growth, up 5.6% YoY.The said realization growth was led by strong growth in the international market.The company’s International business reported 17.5% growth, thanks to the improved product mix, market share gains, and effective implementation of GTM strategy. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages Ltd - Strong Volume Led Growth; Maintain BUY

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Companies in India have disclosed their shareholding pattern as of end-March in April. There are companies with significant float changes from end-September and/or end-December.</li>
<li>The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.</li>
<li>Depending on the date that the shareholding was published, there could be 14 stocks with passive inflows from global trackers while 7 could see passive outflows in May.</li>
</ul>


Companies in India have disclosed their shareholding pattern as of end-March in April. There are companies with significant float changes from end-September and/or end-December.
The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
Depending on the date that the shareholding was published, there could be 14 stocks with passive inflows from global trackers while 7 could see passive outflows in May.


India: Potential Free Float Changes & Passive Flows in May

India

Varun Beverages Limited produces and distributes beverages. The Company offers carbonated soft drinks and non-alcoholic beverages, as well as provides packaged drinking water. Varun Beverages serves customers worldwide.

Varun Beverages (VBL IN)

Varun Beverages Ltd - Robust All-Round Performance

The company achieved a strong all-round performance despite weak and challenging demand environment witnessing a volume growth of 13.9% YoY in CY23.

Axis Direct

Varun Beverages Ltd - STRONG VOLUME-LED GROWTH CONTINUES; MAINTAIN BUY

The company’s robust all-around performance was led by volume growth of 18% YoY (~14% in CY23), driven by strong double-digit volume growth in the...

Axis Direct

Varun Beverages: Expanding Its Footing in the African Market

We maintain our BUY rating on the stock with the revised TP of Rs 1,450/share (47x CY25EPS) vs. the earlier TP of Rs 1,200/share (45x CY25 EPS)

Axis Direct

Varun Beverages Ltd - Strong Volume Led Growth; Maintain BUY

VBL delivered robust all-around performance, which was led by volume growth of 15.4% YoY and an increase in realization growth, up 5.6% YoY.

Axis Direct

India: Potential Free Float Changes & Passive Flows in May

Changes to shareholding patterns could lead to changes in float for some stocks in local/global indices. Passive trackers will need to trade over 3...

Brian Freitas